Montana USDA Loans 2026
FY2026 USDA income limits for every Montana county and metro area, how to check an address for eligibility, USDA’s guarantee fees and ratios, and how zero-down USDA compares with FHA.
USDA Eligible Areas in Montana
USDA’s Section 502 Guaranteed Loan finances homes in eligible rural areas. Eligibility is set property by property, so the only reliable check is the address itself.
| What USDA Checks | Detail |
|---|---|
| Property location | Must be in an eligible rural area |
| Address lookup | Check the exact address on USDA’s eligibility site |
| Property types | Detached or attached homes, condos, PUDs, modular or manufactured homes |
| Use | Permanent residence; cannot be income-producing property |
| Site | No set acreage limit |
Eligibility is determined by address. Check the exact property at the USDA Income and Property Eligibility Site before making an offer.
Montana USDA Income Limits (FY2026)
USDA caps total household income for the Guaranteed Loan program. In 48 of Montana’s 55 USDA income areas the FY2026 limit is $122,800 for a household of one to four people and $162,100 for five to eight. Seven areas are set higher.
| Area | 1–4 Person Household | 5–8 Person Household |
|---|---|---|
| Bozeman | $149,700 | $197,650 |
| Fallon County | $137,800 | $181,900 |
| Lewis and Clark County | $135,350 | $178,650 |
| Jefferson County | $131,900 | $174,150 |
| Stillwater County | $129,150 | $170,500 |
| Missoula | $124,550 | $164,450 |
| Billings HUD Metro FMR Area | $122,850 | $162,200 |
| All other areas | $122,800 | $162,100 |
Figures are FY2026, from USDA Rural Development’s Guaranteed Housing Program income limits (revised July 13, 2026). The limit applies to household income.
Montana USDA Requirements and Fees
USDA’s guarantee replaces a down payment, and it is paid for by program fees rather than by conventional mortgage insurance.
| Item | Standard | Notes |
|---|---|---|
| Down payment | 0% | 100% financing based on appraised value |
| Credit score | No USDA minimum | Applicants must show willingness and ability to manage debt; lenders may set their own |
| Upfront guarantee fee | 1% of the loan amount | May be financed |
| Annual fee | 0.35% | Based on average scheduled unpaid principal balance |
| Technology fee | $25 | May be passed to the borrower |
| Repayment ratios | 29% housing / 41% total debt | USDA ratio guidelines |
| Loan term | 30-year fixed rate only | Rate set by the lender |
| Occupancy | Primary residence | You must personally occupy the home |
| First-time buyer | Not required | Open to repeat buyers |
Fees and ratios are from USDA Rural Development’s Single Family Housing Guaranteed Loan Program materials, current as of January 2026. USDA notes the upfront fee is subject to change but may not exceed 3.5%.
How to Apply, and USDA vs. FHA in Montana
USDA guaranteed loans are made by approved lenders and guaranteed by Rural Development, so you apply to a lender in the ordinary way. Check the address and your income before you shop.
| Step | What Happens |
|---|---|
| 1. Check the address | Confirm the property is in an eligible area on the USDA eligibility site |
| 2. Check household income | Compare your household income against your area’s limit |
| 3. Choose a lender | Apply through a USDA-approved lender |
| 4. Get pre-approved | Lender verifies income, credit and debt ratios |
| 5. Appraisal and underwriting | Financing is based on the appraised value |
| Factor | USDA | FHA |
|---|---|---|
| Down payment | 0% | 3.5% minimum required investment |
| Location restriction | Eligible rural areas only | Anywhere in Montana |
| Income cap | Yes — $122,800 in most areas for 1–4 person households, up to $149,700 in Gallatin | No income cap |
| Loan amount cap | No maximum purchase price; based on appraised value | $541,287 to $754,400 by county |
| Upfront fee | 1% guarantee fee | 1.75% upfront MIP |
| Annual cost | 0.35% | 50–55 basis points on most loans |
